Aftermarket supply chains characteristically include multi-tier distribution networks with large volumes of part numbers and usually intermittent demand. For companies with a significant aftermarket business, it is important to maintain high levels of service across these different service channels. It is also challenging, because traditional supply chain planning solutions don’t address the “long tail” problem very well.
SO99+ solves the service parts planning problem with an exceptional ability to forecast intermittent demand and optimise multi-echelon inventory. Our customers routinely achieve service levels in the mid to high 90s with 20% less inventory. These include manufacturers and distributors of aftermarket parts for automotive, industrial equipment, electrical/electronic components, HVAC and other durable goods.
Our solutions feature extremely accurate forecasting and service level optimisation. Rather than working only with aggregated time series, our demand analytics analyse demand history down to specific channel and individual order-line. This level of detail expertly handles fragmented “long tail” demand, life cycle planning (new products introductions, substitutions and end-of-life), and extreme seasonal demand behaviours. And it does so automatically, using readily available data.
We also address Vendor Managed Inventory (VMI), complex part supersession and replacement rules, fair allocation across multi-level inventory, repair and reverse logistics, and diverse vendor sources with constrained supply.
Aston Martin called in ToolsGroup’s experts to tune its SO99+ engine, which had been at the heart of its spare parts operation for the past 10 years, to meet new challenges.
The SAP R/3 system now feeds data into a parts database and inventory file. SO99+ takes this information, applies analytic models, and generates replenishment proposals.
Read more >
Traditional supply chain planning solutions don’t address the “long tail” problem, so it’s especially difficult to maintain high service levels across differentiated channels...
Read more >